How to Reduce Staff Turnover and Create an All-Star Team

HOW TO REDUCE STAFF TURNOVER AND CREATE AN ALL-STAR TEAM When it comes to sourcing, hiring, training and placing a new employee, false starts - employees who leave their role within a year - can be a costly gamble for businesses of all sizes. Not only are there numerous financial implications for employees who leave within 12 months but a high level of staff turnover, particularly with new employees, can have a dramatic effect on the morale of managers and employees alike. In this infographic we'll investigate the problem of false starts for business, and examine how you integrate new staff, get them up to speed and provide a comfortable and effective transition into a new role - in other words, how to train a new employee to be an all star. THE PROBLEM OF STAFF TURNOVER A recent study found that 25% of UK employees quit their jobs within the first 12 months of hire. There is a real cost implication to high levels of turnover, which is estimated to be between 30% and In the United States, this figure is reported as being as high as 50% 150% of employees' overall annual salary The main causes of high turnover For both new and current employees, the main reasons for leaving usually include: Dissatisfaction with job Unsafe working conditions Poor job performance Inappropriate tools Poor candidate screening Ineffective training Lack of career opportunities Not happy with job scope Conflict with managers Workplace stress Work-place bullying Dissatisfaction with pay HOW TO REDUCE TURNOVER (BEFORE HIRING) Use social media to look at all aspects of a candidate Many employers look only at the technical elements of a candidate, when they should be looking at all aspects of their personality and potential fit with the company. By taking the time to find additional information, such as that made publicly available by candidates themselves on social media platforms, businesses will gain a much better understanding of the personality and values of candidates, and can make a more informed decision. Make the cultural fit a top priority Employers should focus their efforts on the acquisition of candidates who are not just skilled for the position, but are also a strong cultural fit for the company. Behaviour-based screening and interviewing will help to make the best long-term hiring decisions. Ensure the hiring process exposes candidates to the company and their job role By spending additional time explaining what the company does and what the company is about you can ensure a good cultural fit for candidates. Similarly, by spending time going over the role and its responsibilities, you can ensure the candidate is fully aware of what's expected of them and what their potential job involves, making it less likely that they will change their mind once they're working for you. HOW TO REDUCE TURNOVER (AFTER HIRING) Invest in your current staff This isn't purely related to remuneration, but in investing in mentoring and training, as well as giving team-members the opportunity to share ideas. Create an environment where new ideas are encouraged, good work is rewarded and employees feel like a valuable part of the team. Allow people the opportunity to grow, improve and advance One of the reasons many employees leave an organisation is a lack of development or opportunities to advance - by ensuring your employees are allowed (and encouraged) to take on new responsibilities or learn new skills, and that their development is rewarded, you can create a desirable working environment. Learn effective people management People management is an important skill, and one that goes a long way with keeping employees happy and engaged. Create an environment where people are treated as human beings and individuals (rather than just employees) and encourage communication at all levels. By managing people, their expectations, motivations, their problems and learning what makes them happy, employees will show a higher level of contentment, productivity and loyalty. Collect input and ideas, and encourage communication Ask your employees what they think, and encourage them to share their thoughts, concerns and suggestions with their managers and other co-workers. Let everyone have their say on how the business should be run, and action ideas that are worth following. This makes employees feel valued and listened to, and can have a dramatic impact on morale, motivation and productivity. Offer employee perks, benefits and investments Employee investments (benefits they enjoy as part of their employment contract) have been linked to a low staff turnover and a high level of morale. These may be things like wellbeing initiatives, gym memberships or discounts, but can also include more unusual benefits such as pet insurance, extra days off health savings accounts. Create meaningful employee experiences Many employees are looking for more than money from their job. Research has shown that engagement and satisfaction levels increase when employees feel empowered to apply what matters to them to their projects, particularly when the mission of their company aligns to their own personal values. Encourage team members to apply their own values and personality to projects and they'll be far more likely to contribute to the success of the business. AFTER AN EMPLOYEE HAS QUIT OR LET GO Ask for a rationale It can be tempting to take quitting personally or even be angry at an employee's decision to leave, but instead you should treat it as an opportunity to improve things for current and future staff, and potentially prevent it happening again. Try to understand the 'why' behind the employee's decision - in many cases there is nothing that can be done, but sometimes you may be able to offer the employee an opportunity to stay, or at least learn something about how you can improve things for the future. Exit interviews If the employee does go on to leave, you should conduct an exit interview to get their views and perspectives on working for the company. They're more likely to be honest with you in this situation, and some of the insights gained can be invaluable when it comes to training future all-stars who are engaged and committed to the business. Collaborate and communicate You can't control how others react to the news that someone is leaving, but you can control how it gets communicated to them. Collaborate with your exiting employee on how to best present the departure, and work out something that's likely to have the least amount of impact on employee morale and productivity. Transfer knowledge One of the toughest things about staff leaving is the additional workload often put on remaining employees. However, you can use it as an opportunity to talk to employees about their careers and opportunities for growth. Give existing staff the opportunity to learn new skills and potentially move up in the company. During the notice period you can set up a ʼshadowing mechanism', so that those taking over can absorb what they need to. Try to tap the knowledge, skills and experience of the exiting employee and transfer as much as possible to your team. Make a hiring plan Co-ordinate with your HR team to formally list a job opening as soon as possible, so that your team knows the shortfall is temporary. If possible, recruit and promote from within and hire someone new to take the current employees' role. It's also a good opportunity to communicate with your team and make them feel part of the decision-making process - ask them what qualities they would like to find it more likely that a new hire will fit in well with your current team and business culture. the new hire. 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